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Summertime Tax Tip #9: Going Back to School? It Might Qualify as a Tax Deductible Business Expense

It’s smart to try to get ahead in your field or at least keep pace with the latest developments. So some of your clients may be planning to put down their work tools and pick up books again as another school year beckons. Can a taxpayer deduct any education expenses if he or she is already working? Regardless of your intentions, it all depends on whether or not you pass the tax law test.

Ken Berry, JD

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Summer Time Tax Tip #8: Deductions for Medical Expenses: When a Swimming Pool is Deductible

However, there’s a silver tax lining if the pool is needed by a family member to alleviate arthritis or some other specific illness. For a medically-necessary improvement made by a homeowner, the deductible amount is equal to the cost above the corresponding increase in the home's value. In addition, the annual maintenance costs associated with the pool — chlorine, repairs, utilities, cleaning services, etc. -- also qualify for the deduction. Note that the entire cost of a qualified improvements, plus the maintenance costs, is deductible by tenants.

Ken Berry, JD

IRS Gives an Inch on Once-A-Year IRA Rollover Rule

The IRS isn’t backing off on its tough stance involving the “once-a-year-IRA rollover” rule. In the aftermath of a new case tightening the restriction for IRA owners (Bobrow, TC Memo 2014-21), it recently announced it intends the follow the Tax Court’s lead on this issue. However, showing some leniency, the IRS now says it won’t implement the new rule until 2015, providing clients with leeway for the rest of this year (Announcement 2014-15)

Ken Berry, JD